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Offshore With-Profits MVA-Free Options

MVA-Free Options - Only Applicable to the Premier Bond 2

If your MVA-free date is approaching, it’s important to carefully consider all your options.

First of all it is important to understand the difference between the bond and the fund(s) in which you have invested. Your bond does not have a specified investment term or maturity date and can continue for the whole of your life. And although the Offshore With-Profits Fund does not have a specified investment term either, it does have a market value adjuster-free date, which would have been fixed on the day you invested in the fund.

On the MVA-free date you have a number of options available to you, which are explained below.

If you are happy with your investment, you can remain invested in the Offshore With-Profits Fund and receive a new MVA-free date in three years time. If you choose this option you do not have to do anything.

We recommend you carefully read all the options available to you on the MVA-free date and discuss them with your financial adviser before making a decision. We also recommend you consult your financial adviser on the taxation treatment of regular withdrawals in your country of residence.

What are my options?

1. Keep your bond as it is

If you are happy with your bond you can leave it as is, especially if your personal circumstances and financial goals haven’t changed.

2. Start taking MVA-free regular withdrawals

On the MVA-free date you can choose to take MVA-free regular withdrawals, up to a maximum of 10% of the original value of your Offshore With-Profits investment each year.

Regular withdrawals can be deducted on a monthly, quarterly, half-yearly, or yearly basis. The minimum that can be taken from the bond at any one time is currently £200 ($300 or €300).

If you are already taking regular withdrawals from the Offshore With-Profits Fund, and you choose to remain invested in the fund after the MVA-free date, your withdrawals will continue unless you tell us otherwise. If you would like to increase or reduce your regular withdrawal amount, please tell us on the regular withdrawal form.

If you cancel your existing regular withdrawals and wish to start them again at a later date, an MVA may apply.

3. Move your money into a new fund(s)

You can switch funds up to 12 times a year free of charge and select from a range to suit your attitude to risk. If you switch into a fund other than Offshore With-Profits, you will be able to take regular or one-off withdrawals, at any time after the MVA-free date, with no MVA.